After the closure of the deal, Braintree will operate as a separate service within PayPal under the leadership of Bill Ready, who will report to David Marcus, president of PayPal.

John Donahoe, president and CEO of eBay, said: “Together, we expect that PayPal and Braintree also will accelerate our leadership in supporting developers who are creating innovative solutions for next-generation commerce startups.”

The transaction, which is subject to regulatory approvals, is expected to close in the fourth-quarter of 2013. The deal will not affect management team and employees of Braintree.